KUCHING: Sarawak United People’s Party (SUPP) Kuching Branch has called on the people of Sarawak to stand behind Petroleum Sarawak Bhd (PETROS) in its legal bid to safeguard the state’s oil and gas interests.
This follows PETROS’ opposition to an application by Petroliam Nasional Bhd (PETRONAS) seeking a stay in the recovery of a RM7.95 million bank guarantee – a request submitted to the High Court on October 14 last year.
SUPP Kuching Branch said it supports PETROS’ request for the court to declare PETRONAS’ application as unreasonable and invalid.
“Under Section 7 of the 2016 Natural Gas Distribution Act, all developers must obtain a licence from the Sarawak government.
“However, PETRONAS has yet to secure this licence, making its natural gas supply agreement signed on December 30 in 2019 legally questionable.
“Consequently, any claim for bank guarantees should be deemed void.
“PETROS has solid legal grounds to oppose PETRONAS’ application for an extension, ensuring the High Court ruling clarifies the legal ramifications of PETRONAS’ unlicensed operations,” it said in a statement today.
SUPP Kuching Branch also reiterated its support for Premier Datuk Patinggi Tan Sri Abang Johari’s win-win approach in managing Sarawak’s oil and gas resources.
It pointed out that the Premier has emphasised that while contractual obligations should be honoured, they must not undermine PETROS’ role as the natural gas aggregator, nor should they contradict the provisions of the 2016 Natural Gas Distribution Regulations.
“The Premier has insisted that PETRONAS and PETROS must operate as partners, jointly advancing national and Sarawakian interests while prioritising Sarawak’s benefits,” it said.
SUPP Kuching Branch said the state government has made initial progress through negotiations, securing the natural gas aggregator position for PETROS.
This achievement was made possible due to strong public support, which has empowered the Sarawak government to push forward its oil and gas rights agenda.
“Sarawak’s offshore oil and gas rights are based on the Sarawak 1958 Oil Mining Ordinance, which remains in effect.
“While Malaysia’s Parliament passed the 1974 Petroleum Act during the 1969 national emergency, the Act was never re-evaluated after the emergency was lifted in 2011.
“This has led to a legal coexistence between the 1958 Oil Mining Ordinance and the 1974 Petroleum Act,” it explained.
At the same time, SUPP Kuching Branch stressed that the fight for Sarawak’s rights must continue, as the only way to safeguard Sarawak’s interests is for its people to support the government in negotiating with the federal government under the Malaysia Agreement 1963 (MA63).
These negotiations led by the Premier and Prime Minister, Datuk Seri Anwar Ibrahim, are crucial in resolving existing legal conflicts and securing Sarawak’s rightful share in the nation’s oil and gas industry.
“Given that Sarawak’s offshore oil and gas industry is vital to the state’s economy and social development, we urge Sarawakians to rally behind PETROS.
“Public backing is essential in ensuring Sarawak’s oil and gas interests remain protected, ultimately strengthening Sarawak’s position in ongoing negotiations,” it added.
